Officials have told Legco that Chinese University's hospital won't be able to keep operating if it starts paying back a HK$4 billion government loan next month as scheduled and lawmakers should agree to a five-year delay for the repayments.

In a paper submitted to the legislature, the government says the CUHK Medical Centre has experienced cash flow problems because of the pandemic and has been in the red since it opened in 2021.

"[The medical centre] reported that its cash flow projection in the next 10 years would be in a dire state with negative cash balance throughout 2023 to 2032, bottoming at lower than negative HK$2 billion in 2027 if the original loan repayment schedule is proceeded," the government says.

It adds that if the deferment is agreed and the loan is eventually paid back over a decade, the hospital can make up for the government's estimated HK$1.1 billion loss in interest by providing medical services to the public.